$20,000 Small Business Instant Asset Write-Off
In the 2023–24 Budget announced on 9 May 2023, the Australian Government introduced a temporary increase in the instant asset write-off threshold for small businesses. From 1 July 2023 to 30 June 2024, small businesses with an aggregated turnover of less than $10 million will be able to write off the full cost of eligible assets that are valued at less than $20,000.
This new threshold is set to improve cash flow and reduce compliance burdens for small businesses. Keep in mind that this measure is not yet law, but it’s currently under consideration in Parliament as part of the Treasury Laws Amendment (Support for Small Business and Charities and Other Measures) Bill 2023.
With this measure, small businesses can claim an immediate deduction for multiple assets, as long as each individual asset costs less than $20,000 and is first used or installed between 1 July 2023 and 30 June 2024. If an asset costs $20,000 or more, it will not qualify for the instant write-off, but can still be placed in the small business simplified depreciation pool. Assets in this pool are depreciated at a rate of 15% in the first income year and 30% for each year thereafter.
This initiative aims to support small businesses in making necessary purchases and investments without a complex compliance process. If you’re a small business owner, keep an eye on this legislative development to see how it could benefit your business.
We tailor equipment finance solutions to fit your business structure and goals. To make the most of your benefits this financial year, talk to us about funding options for your upcoming purchases.
For funding solutions tailored to manage ATO liabilities, connect with our team 0429 494 641, So we can learn more about your needs and provide the right solution for you.
Linkedin
DISCLAIMER: The above content is to provide general information and does not constitute financial, legal or other advice. This means that duties and requirements imposed on people who give financial advice do not apply to this content. For advice contact your accountant or legal advisor.